Car insurance costs have increased hugely in recent years
The Government has provided fresh details on a project to tackle soaring car insurance premiums. Costs have fallen over the past year and a half, yet they remain 25 per cent higher than they were three years ago. Labour MP Darren Paffey submitted a written parliamentary question asking what is the Government’s strategy for combating motoring insurance fraud and ghost brokers.
Ghost brokers are scammers who peddle fake car insurance or home insurance policies that are either non-existent or invalid. Cabinet minister Dan Jarvis delivered a response from the Government. On car insurance, he pointed to one particular initiative currently in progress to slash insurance bills for motorists.
He said: “The Government launched a cross-Government motor insurance taskforce, co-chaired by the Department for Transport and His Majesty’s Treasury, to help drive down the costs of motor insurance and will consider related fraud as part of this.” Mr Jarvis also pointed to an upcoming deadline for the taskforce’s work.
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He said: “The taskforce is expected to publish its final report in the autumn.” The taskforce was established in October 2024, aiming to investigate the causes behind “rapidly rising premiums” and to look at methods to control these expenses.
Among the factors being looked at are inflation, rising incidents of car thefts and the effect of Britain’s pothole-plagued roads in damaging vehicles. Insurance firms, consumer advocacy groups and regulators have all been involved in the taskforce.
Mr Jarvis also said: “The Government recognises the harm caused by insurance fraud, including ghost broking. This is why we have launched an Insurance Fraud Charter with key firms setting out a series of voluntary measures to disrupt and deter insurance fraud.
“As part of the Stop! Think Fraud public communications campaign, the Government supported a campaign led by the Association of British Insurers, the City of London Police, and the Insurance Fraud Bureau to highlight the signs of Ghost Broking and encourage public reporting to CheatLine.
“We continue working with law enforcement and industry partners, including the City of London Police’s Insurance Fraud Enforcement Department, to combat this crime and protect consumers.”